SpaceX CFO and the GPU depreciation claim

by Freddenver: Finance

The part of this that stops me is the shelving. GPUs bought in thousands, sitting in racks, never powered on, and per the speaker the buyer can't even install them because the data center can't get built. So they just stack up. And the reason a CFO had to jump in and cover on the earnings call is that flipping those GPUs on starts the clock: depreciation kicks in, and so does booking the loss on all the capital that went into buying them. Leave them dark and neither expense shows up. Which, if you follow the speaker's logic, is the whole trick. Take the exchange, the gigawatts and the CFO together and the strong earnings are explained by what isn't being depreciated. Not by what's actually running. That's a hell of a way to post a good quarter.